California owners lost $33,000 in home equity in a year

"Remember that a home loan's financial leverage can boost ownership profits over the mortgage's life but also magnify the impact of price declines. My trusty spreadsheet reviewed Cotality's third-quarter report on homeowner equity, focusing on homes with mortgages and comparing home values with loan balances. Cotality tracked this measure of financial cushion for borrowers in 49 states (Vermont didn't have enough data) and the District of Columbia."

"Mortgaged homes across California lost an average $33,000 in equity in the year ended in September. That's more than double the national decline of $13,000. Equity declined in 33 states as home values fell in many areas over the past year. Florida had the biggest drop with average equity down $37,000. Next was the District of Columbia, off $36,000. After California, Washington state was off $32,000. Texas had the eighth-biggest dip, down $26,000."

"Years of Golden State home-price gains dull the pain of the recent downswing. Californians still have plenty of equity left, despite the 2025 slip: an average $603,000 per mortgaged home. That's slightly more than double the nation's average equity stake of $299,000. Only Hawaiians have more equity at $674,000. After California, Massachusetts came in at $476,000, Washington state at $431,000, and New Jersey at $408,000. Texas was No. 36 at $188,000, and Florida was No. 18 at $279,000."

Homeowner equity for mortgaged properties fell in 33 states over the past year, with the national average decline at $13,000. California experienced a $33,000 average equity loss, more than double the national drop, while Florida led with a $37,000 decline and the District of Columbia fell $36,000. Washington and Texas also saw notable drops. Several Northeastern states recorded the largest gains, including Connecticut (+$32,000) and New Jersey (+$28,000). Despite recent declines, California retains substantial equity—about $603,000 per mortgaged home—well above the national average of $299,000.

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